Hermes' Greenberg: There is nothing earth-shattering happening in EMs - US is the wild card

Everything else is 'relatively predictable'

Uncertainty in the US is increasingly becoming the biggest headwind for emerging markets, according to Gary Greenberg, manager of the $2.6bn Hermes Global Emerging Markets fund.

Despite the recovery for the asset class, with the MSCI Emerging Markets index up 56% in dollar terms since February 2016, Greenberg is keeping a close eye on both long-term developments and short-term cyclical changes in the sector, while considering what it will take for its success to last. He said: "First we need to think about what forces brought EMs down. Commodity prices were bad, corporate profitability was lousy and the dollar was strong. All those factors have turned around, but we must keep focused as valuations are only OK. "They are dependent on profitability, which is de...